Individual consulting: A primer

Keep your clients happy, protect your reputation and make yourself some money. Maya Herrera suggests consultants make this their mantra. Herrera - a writer, professor and actuary - embraces a sensible, straightforward and functional credo that has helped her become one of Manila’s highly regarded consultants. To be clear: Consulting involves much more than jetting around the globe to trouble-shoot clients’ problems and network at fancy dinner parties. It requires lots of leg work, technical expertise and a willingness to assist others in the implementation of development projects. Giving quality advice and service is key to protecting one’s reputation and brand. Not only must consultants possess the technical expertise, they must also stick to agreed-upon schedules. “Deadlines are carved in stone,” Herrera stressed. “If it means you do not sleep, you do not sleep.” She said consultants should try “really hard” not to accept projects no matter how attractive the fee. These would include those that would allow consultants to learn but where they have no previous experience and where they do not have the time to take them on. “It’s like a drug sometimes,” Herrera remarked. “This happens a lot when there’s money in a sector, and there are a lot of projects. You’d drool to get all of them.” Dropping out is one way to ruin a reputation, so consultants must ensure a project is worth their while. They must also see to it that they would not starve taking it on. Herrera admitted she once accepted a project because it brought her to one of the Philippines’ remotest - and most beautiful - islands. “It was clear to me, it’s not for money,” she said. “But you can’t do this 365 days a year.” Calculate your pay rate To calculate one’s payment rate, individual consultants may want to determine their desired annual income net taxes and target number of working hours in a year. Herrera gave an example: Imagine you’d like to work 40 hours a week for 46 out of 52 weeks per year. Of the total hours, figure out the proportion of time for actual paid work, which would exclude time spent on marketing and sending proposals. Multiply the total number of work hours with the percentage of time for consulting, which Herrera said ranges from 40 to 70 percent, to come up with the hourly billable rate. “If you’re really well established, you don’t spend a lot of time marketing because people [are] knocking on your door,” Herrera observed. “If you’re new to the game, you spend more time marketing, preparing proposals and contracting. If you’re really unlucky, you spend more time contracting than working.” But, she added: “If you’re making your clients happy, you will probably eventually make money.” Many projects already define indicative rates for consultants. Similarly, donor organizations usually have standard or expected rates. Consultants must be prepared to justify personal fees, Hererra stressed. This can be done by indicating the earning volume for the last three projects. And, consultants should negotiate wisely because present rates affect future ones. According to Herrera, it would be better to do a project pro bono than allow a severe discount to get into a consultant’s record. Build professional relationships As an individual consultant, one’s asset is no less than oneself. Herrera said consultants are hired for their technical skills and know-how. “This is why you shouldn’t assume you would be billable 52 weeks a year because you must take time to update yourself,” she said. Consultants, especially new ones, would rely on their qualifications and credentials to gain contracts. They should develop a knowledge base or familiarity of their focus industry or sector. Other relevant skills are client management and communication. It is key to cultivate relationships. According to Herrera, consultants who are known to funders easily get onto their shortlists. Having a good relationship with beneficiary communities can make it easier to get projects done, she added. Networking with like-minded colleagues pays off, particularly in the development sector. Because most development projects are large, collaborations are likely, Herrera said. “If you already have good working relationships with [your partners], your projects will go better,” she said. “Second, if they need someone along your line, they will recruit you. If you find a project you want to work on and you’re the lead, it’s much easier for you to build a team.” Choose your clients Private-sector consulting can be all about the money. On the other hand, public sector work, with its layers of bureaucracy, can be frustrating. “I think the key to not throwing in the towel is to focus on what is doable,” Herrera said. “It’s easy to focus on the difficulties.” The challenge with public-sector work, she argued, is to apply tried and tested ways and explore what else might work. “Because, at the end of the day, the reason you’re in development as opposed to private-sector consulting is because you believe there are things you believe are worth it,” Herrera said. She also stressed the value of choosing projects that could actually get implemented. “At some point in your career, you will have the luxury of choice,” she said. “In the beginning, you’re just making sure you’re surviving. Choose the projects that will make a difference.” She reminded: “The point of doing public-sector work is not to make money. But I hope you do.” Read more career advice on consulting: - A Survival Guide to Consulting Read more career advice articles.